Solution-What will be rate of return earned by firms in the

What will be rate of return earned by firms in the industry

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A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 6.00 percent. This firm is earning $15.00 on every $150.00 invested by its founders. What is its percentage rate of return? percent Is the firm earning an economic profit? If so, how large? percent Will this industry see entry or exit? What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?

Reference no: EM13213224

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What will be rate of return earned by firms in the industry

Reference no: EM13213224

Reference no: EM13213224

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